Millions in new research to boost Victoria’s timber innovation
Friday 24 Oct 2025
The Victorian Forest Products Association (VFPA) has welcomed
this week’s announcement by the Australian Government and
Australian Forest and Wood Innovations (AFWI) of millions of dollars in
new research investments that will help accelerate innovation across
Victoria’s plantation, wood-fibre and engineered wood
manufacturing sectors — supporting jobs, housing supply and
greater sovereign manufacturing capability.
VFPA Chief Executive Officer Andrew White said the announcement
recognises Victoria’s leadership in plantation forestry and its
pivotal role in delivering more homes built with sustainable, locally
made timber. “Victoria is the home of plantation forestry
— and this new wave of AFWI investment will help unlock the next
generation of engineered wood products, advanced manufacturing and
potential for biofuels development,” Mr White said.
“These projects will deliver long-term benefits for housing, jobs
and regional innovation right across the state.”
Some of the newly announced AFWI-funded projects that will benefit
Victoria include:
- Advanced Manufacturing Precinct Strategy: an
advanced manufacturing feasibility initiative bringing together
industry, research and government partners to develop new engineered
wood products, prefabricated dwellings and bio-based co-products at
scale. The project aims to grow domestic manufacturing capacity and
displace imported engineered wood products, ensuring Victoria is less
dependent on imports and retains more value-adding locally.
- Giant Pine Scale (GPS) research: biosecurity
research which aims to provide sustainable management options for exotic
pest giant pine scale (GPS), including new biocontrol options being
developed in Victoria (a Greek fly). Currently confined to urban
Melbourne and Adelaide, GPS threatens the productivity of
Australia’s vital softwood industry that goes into housing supply,
as other than tree removal, there are currently no effective control
options.
- Fibre to Fuels: Linking Australia’s
Sustainable Forestry and Renewable Energy Sectors. The Fibre to Fuels
project is designed to link Australia’s sustainable forestry
sector with the fast growing renewable energy market. It focuses on how
industry can most effectively turn forestry residues into low-carbon
liquid fuels and other high-value products. This approach could help
make better use of underused wood fibre residues, creating new income
opportunities for forestry businesses, and supports the shift toward
cleaner energy sources.
Mr White said these projects show how Victoria’s forestry and wood
manufacturing sectors are driving solutions that directly address
Australia’s housing and supply chain challenges, whilst protecting
vital timber plantations from biosecurity threats.
“Timber is essential to tackling Australia’s housing
shortage,” Mr White said.
“By developing new approaches for advanced engineered wood
products and prefabrication, these AFWI projects will help make more
sustainable, locally produced timber available for home construction
— reducing our reliance on imports and keeping jobs, skills and
investment in Victoria.”
Mr White said the funding highlights the power of collaboration between
industry, researchers and government.
“These projects show what’s possible when science, industry
expertise and innovation come together — from tackling emerging
biosecurity threats to creating the next generation of prefabricated and
engineered timber housing,” he said. “AFWI’s
investment will help transform research into real-world solutions
— strengthening regional communities, supporting local
manufacturing and ensuring more Australians can build homes with
Victorian timber.”
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Source: Victorian Forest Products Association (VFPA)
Image credit: Australian Forest and Wood Innovations (AFWI)
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